Paynet, Bank Standoff Wages On

Electronic payments system service provider, Paynet Zimbabwe’s protracted wrangle with local banks over unpaid invoices for services rendered amounting to US$ 470 000 has taken a new twist with the tech company instructing its legal practitioners, Titan Law, to commence legal action against Bankers Association of Zimbabwe, 263Chat Business has learnt.

Paynet wants damages of US$ 100 million for “anti-competitive” practices.

“Payserv Africa Limited and Paynet Zimbabwe (Pvt) Ltd have instructed their legal practitioners in Zimbabwe, Titan Law, to commence legal action against the Bankers Association of Zimbabwe (BAZ) and related parties for anti-competitive practices seeking damages of US $100 million,” Paynet Zimbabwe said in a statement.

Paynet suspended its services to local banks last month over lack of payment and has since announced free salary transfers into EcoCash wallets allowing employers continued access to Paynet’s software with the arrangement set to expire on the first of August.

The company operates the system that facilitates huge electronic payments in RTGS for salaries, wages and other settlements.

Banks want to pay the debt in local RTGS dollars using the 1:1 exchange with the USD which was in place at the time, but the tech company says even then, the value of the RTGS dollar had long depreciated.

Apparently, banks have turned to ZimSwitch which is 80 percent owned by a number of local banks.

“The banks have said no, and they have developed a system which is working and is robust…At the end of the day, we have a better product we own as banks. All the banks own this product and we will not pay forex for it.” John Mushayavanhu – FBC Holdings CEO said.

263Chat Business could not reach the Bankers Association of Zimbabwe for comment on the pending litigation Paynet has threatened.